The forex market is always available for trading but at different times of the day some assets are more liquid than others.
The market opens from Monday morning in Sydney to Friday afternoon in New York with the close of the Forex market being 1:00 AM, Kenyan time on Friday (which is at 5 pm EST).
Unless you prefer to trade in the thick of night, the best times for forex trading brokers in Kenya to trade forex would be trading the London session which opens at 11:00 am Local time, or when the London session and the New York Sessions overlap between 4 PM and 8:00 PM.
The major Forex trading sessions can be divided into the following:
- Sydney Session
- Tokyo Session
- London Session
- New York Session
Among these, the traditionally more important sessions are the Tokyo (Asian), London (European), and New York (North American) sessions with expert traders often focusing on one of these. They are the forex market’s most active sessions.
Four more sessions, known as the Minor trading sessions, are:
- Singapore Session
- Hong Kong Session
- Wellington Session
- Frankfurt Session
These trading sessions work like dominos: as one closes, another opens but may overlap with a major session. With London and Frankfurt located in the same time zone, there is just a one-hour difference between their opening and closing times.
Forex trading brokers in Kenya should take the following sessions into account when choosing the best opportunities:
The London – New York Overlap Window
The best forex trading time in Kenya is between 16:00 and 20:00 hours (4:00 PM and 8:00 PM local time). At 16:00 hours, the London and New York trade sessions start to overlap which continues up until 20:00 hours. The market is most liquid, and most brokers have the lowest spreads at this time.
The London Session Forex Session
The best time to trade forex in Kenya is typically during the London session, when the most volume occurs. The London session has the most liquidity, so there are more buyers and sellers in the market and prices are prone to respond to news and events.
Because London is the financial centre of the world with many banks and financial institutions headquartered here, this is the busiest session with a great deal of foreign exchange activity.
Different traders have different opinions on the best time to trade forex. Some people believe that trading during the daytime is the best way to go, while others prefer to trade at night.
The EUR/USD is the most traded currency in the world and attracts some of the lowest spreads across all forex trading brokers.
The best time to trade EUR/USD in Kenya is between 4:00 P.M and 8:00 P.M (local time) when the London and New York forex trading sessions overlap.
Knowing the best days to trade will also have a significant impact on your success. Most action in the market happens on Tuesday, Wednesday, and Thursday.
Other things to consider include market volatility and your own personal schedule. If you are a day trader, you will want to trade during the most volatile times of the day. If you are a swing trader or position trader, you may want to trade during more stable times of the day.